U.S. stocks edged higher in the previous session as investors assessed a slew of economic indicators. Weak crude oil prices supported market sentiment, while a rebound in semiconductor stocks and a decline in U.S. Treasury yields helped lift all three major U.S. equity indices. The Dow Jones Industrial Average rose 160.24 points, or 0.30%, to close at 53,577.40. The S&P 500 gained 24.40 points, or 0.32%, to 7,677.28, while the tech-heavy Nasdaq Composite advanced 171.11 points, or 0.66%, to end at 26,151.30.
Market participants are closely watching the release of the U.S. July PCE Price Index, a key inflation gauge monitored by the Federal Reserve in assessing monetary policy. Investors are also awaiting Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole annual symposium later this week for further clues on the interest-rate outlook.
Meanwhile, the U.S. economy added an average of 11,750 jobs per week during the four weeks ended August 8, according to data released by Automatic Data Processing Inc. (ADP) on Tuesday. This marked the second consecutive week of an increase in hiring, up from the previous week’s average of 9,500. ADP noted that the figures are preliminary and subject to revision.
However, U.S. consumer confidence weakened in August, with the Conference Board Consumer Confidence Index declining to 89.4 from 90.8 in the previous month. The Expectations Index, which reflects consumers’ short-term outlook for income, business activity and labour-market conditions, fell 5.8 points to 68.2. In contrast, the Present Situation Index increased by 6.8 points to 121.2, ending a three-month decline.
WTI crude oil prices extended their losses and approached the $80-per-barrel mark, hitting around a two-week low as markets assessed the possibility of the Strait of Hormuz reopening following renewed talks between Iran and Oman.